Simple Interest Calculator

Calculate simple interest on a loan or investment. Unlike compound interest, simple interest is calculated only on the original principal, making it straightforward to compute.

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Simple Interest Calculator

finance calculator

$
%
years
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How It Works

Formula

Simple Interest = Principal × Rate × Time
I = P × r × t
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Examples

$10,000 at 5% for 3 years

$1,500 interest, $11,500 total.

Frequently Asked Questions

What is simple interest?

Simple interest is calculated only on the original principal, not on accumulated interest. It is common for short-term loans, car loans, and some bonds.

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How is simple interest different from compound interest?

Simple interest is calculated only on the principal. Compound interest is calculated on the principal plus accumulated interest, so it grows faster over time.

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